Women's Budget Group's immediate response to the Spring Statement 2025
“We recognise the challenging situation facing the Chancellor. However, the Government is making decisions that will seriously impact people’s lives up and down the country, particularly children, women and Disabled people, based on forecasts that may not even materialise in order to meet its own self-imposed spending rules. This is deeply disappointing and misguided.
“The Government’s own impact assessment shows that changes to social security are likely to result in an alarming 250,000 more adults and 50,000 children being pushed into poverty undermining its own child poverty strategy due to launch in June.
“They also show that the largest group affected by the changes will be single women, making up 44% of those losing out, at an average of £1,610 a year.
“Frustratingly, there is nothing in the documents on the impact on carers or likely impact on people who may have to drop out of the workforce to pick up the care of people whose benefits have been cut – most of whom will be women.
“Years of austerity under previous governments diminished people’s living standards and weakened the economy, making us less prepared for the economic shocks that followed. The Chancellor has committed to improving people’s living standards. This can’t be done by cutting vital social security and public services. Instead she should be investing in the foundations of our economy, repairing the damage done through austerity.
“This could be funded by taxation of the very wealthiest people in the country, redistributing resources in a time when wealth inequality is growing. We would also urge the Chancellor to reconsider her fiscal rules to recognise the value of investing in social infrastructure, including social security and public services. Ill and Disabled people have already borne the brunt of austerity, they should not pay the price of arbitrary spending rules and unreliable forecasts.”
Impact assessments
“The impact assessment estimates that an alarming 50,000 more children will be in poverty as a result of the changes, and 250,000 adults.
“The equality impact assessments of changes to social security show that 44% of adults who will lose out are single women, losing an average of £1,610; 34% are single men losing an average of £1,460 and 32% are couples.
“Single women also make up the majority of those who will gain from the changes to the standard rate (59%), but by a lower average amount of £380 a year. Single men will gain an average £470 a year.
“Frustratingly, there is nothing in the documents on the impact on carers or likely impact on people who may have to drop out of the workforce to pick up the care of people whose benefits have been cut.”
Analysis continues at https://www.wbg.org.uk/article/our-immediate-response-to-the-spring-statement-2025